Modi, Sanchez launch military aircraft unit

A plant for producing Airbus C295 military transport aircraft was inaugurated in Vadodara on Monday by Prime Minister Narendra Modi and his Spanish counterpart Pedro Sanchez, who both hailed the project as a milestone in India’s aviation and defence manufacturing capabilities.

Sanchez, the first Spanish premier to visit India in 18 years, and Modi toured the plant located at the Tata Advanced Systems campus in Vadodara after participating in a road show in the city. The first C295 military transport aircraft made in India is expected to roll out from the plant in 2026.

The plant, set up by Tata Advanced Systems in collaboration with Airbus Spain, will manufacture 40 of the 56 Airbus C295 aircraft ordered for the Indian Air Force (IAF) under a $2.5-billion contract in September 2021. Airbus will deliver the 16 other aircraft in a “fly-away” condition from its assembly line in Seville, Spain, and six have already arrived in India.

Speaking at the plant’s inauguration, Modi said the factory will give a new direction to the India-Spain partnership and bolster the “Make in India, make for the world” mission. Referring to the recent death of former Tata Sons chief Ratan Tata, Modi said, speaking in Hindi: “If he was among us today, he would probably have been the happiest. But wherever his soul is, he must be feeling happy today.”

“I am confident that in future, the aircraft made in this aircraft factory will be exported to other countries as well,” Modi said.

Sanchez sought to position Spain as “a reliable and strategic partner” for India, and said the Tata-Airbus partnership will contribute to the progress of the country’s aerospace industry and open new doors for the arrival of other European companies.

“In addition to contributing to modernising India’s defence capabilities, it will also drive technological development,” Sanchez said, adding the plant will help create a new generation of qualified technicians and engineers. Spain is committed to transfer of technology for creating an industrial ecosystem covering manufacture, delivery, production of parts, testing and maintenance of the aircraft, he said.

Modi said several steps over the past 10 years have strengthened defence manufacturing and driven exports of military hardware, moving India away from its traditional role as an importer of such equipment. Defence exports have increased 30 times, and India supplies military equipment to more than 100 countries, he said.

A vibrant defence industry has developed, the private sector’s role has increased, the public sector has been made efficient, and ordnance factories were converted into seven companies, while the Defence Research and Development Organisation (DRDO) and Hindustan Aeronautics (HAL) were strengthened, and defence manufacturing corridors created in Uttar Pradesh and Tamil Nadu, he said.

The plant in Vadodara can also play a key role in future in designing and manufacturing civilian aircraft, given the needs of the booming aviation sector, Modi said. In this context, he pointed to orders placed by Indian airlines for 1,200 aircraft and the government’s efforts to make the country a hub for aviation and maintenance, repair and operations (MRO).

“In future, this factory is going to play a big role from designing to manufacturing civil aircraft to meet the needs of India and the world,” he said.

Following the roll-out of the first “Made in India” C295 in 2026, the delivery of all aircraft will be completed by 2031. The groundbreaking for a training centre at the Agra airbase was done in March 2023 and a full motion simulator is set to be delivered by the end of 2024.

The plant in Vadodara is the first “Make in India” project in the private aerospace sector involving the development of a full industrial ecosystem, including assembly, testing, qualification, delivery and maintenance for the aircraft over 25 years. Leading defence public sector units such as Bharat Electronics and Bharat Dynamics will contribute to the programme.

Ahead of the factory inauguration, Modi and Sanchez participated in a roadshow that spanned 2.5 km, from the airport to the manufacturing facility. The leaders also held bilateral talks at the Darbar hall of the Laxmi Vilas Palace.

Tanmaya Lal, secretary (West) in the external affairs ministry, said an ecosystem will be developed in India for the manufacture of 18,000 components for the C295 by small and medium enterprises in places such as Hyderabad, Nagpur and Bengaluru. While the plant in Vadodara will generate 3,000 direct jobs, the manufacturing of parts is expected to create another 10,000 jobs.

“This is really a milestone [since] for the first time, the private sector will be involved directly in production of this military transport aircraft,” he said.

The C295, capable of operating from short or unprepared airstrips, can transport up to 71 troops or 50 paratroopers, and be used for logistic operations at locations that are inaccessible to heavier aircraft. It can also be used for medical evacuation, disaster response, special missions and maritime patrol duties.